Housing Bubble
Florida's home sales rise 14 percent in June
July 25, 2003
ORLANDO, Fla., /PRNewswire/ -- Summertime in Florida and, just like the weather, the state's housing market is hot, hot, hot. In June, statewide sales of existing single-family homes rose 14 percent with a total of 18,828 homes sold compared to 16,476 homes a year ago, according to the Florida Association of Realtors(R) (FAR).
The statewide median sales price rose 11 percent to $161,900 last month; a year ago, it was $146,100. In June 1998, Florida's median sales price was $105,800, according to FAR records, which translates to an increase of about 53 percent over the five-year period.
Florida's median sales price compares favorably to the national median sales price for existing single-family homes, which was $167,000 in May, up 7.7 percent from May 2002 when the median price was $155,000. In California, the statewide median resales price was $369,290 in May; in North Carolina, the average resales price was $186,464 for the month; in Illinois, the statewide median price was $172,290; in Virginia, the median price was $164,521; and in Ohio, the average statewide resales price was $147,142.
Across Florida, Realtors in many markets continue to report low inventories of homes for sale and rising prices. Historically low interest rates continued to boost buyer interest in June and likely contributed to the short supply of available homes in many areas. The 30-year fixed mortgage rate averaged 5.23 percent last month, compared to a rate of 6.65 percent recorded in June 2002. FAR's sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.
Among Florida's larger to medium-size markets, the Orlando Metropolitan Statistical Area (MSA) reported a 13 percent increase in resales last month, with a total of 2,807 homes changing hands compared to 2,477 homes sold a year ago. The area's median sales price rose 11 percent in June, reaching $148,600; a year ago, it was $133,800.
Dean Asher, president of the Orlando Regional Realtor Association and vice-president of Don Asher & Associates, says the historically low mortgage rates are attracting scores of first-time and move-up buyers into the Orlando market, as well as those seeking second homes for investment purposes.
"The Orlando housing market is hot," he says. "Even with more listings than the same time last year, the inventory of homes for sale has actually gone down. The lesson here is if you don't act quickly, your dream home may not be around tomorrow."
Other larger markets reporting strong home sales in June include: Daytona Beach, where 1,091 homes sold for a 35 percent gain; and Tampa-St. Petersburg- Clearwater, where 3,112 homes sold for a 22 percent increase. The median sales price also rose in those markets last month: in Daytona Beach, 30 percent to $133,900; and in Tampa-St. Petersburg-Clearwater, 9 percent to $152,400.
Looking at the state's smaller MSAs, Fort Walton Beach had a 40 percent boost in resales activity last month, with a total of 388 homes sold compared to 278 homes sold the previous June. The market's median sales price rose 5 percent to $154,100; a year ago, it was $146,400.
Low mortgage rates also are a big factor in the increased resales activity in the Fort Walton Beach area, agrees Kerry Veach, president of the Emerald Coast Association of Realtors, and broker-owner with Re/Max Southern Realty.
"With two Air Force bases here, the military really is fueling our housing market," he says. "Hurlburt Field is home to special ops and they're bringing in 3,000 more people before the end of the summer, and more personnel supposedly will soon be reporting to Eglin Air Force base as well."
Other smaller MSAs reporting solid home sales last month include: Panama City, where 221 homes sold for a 35 percent increase; and Melbourne- Titusville-Palm Bay, where 687 homes changed hands for a 25 percent gain. The median sales price in those markets also rose: in Melbourne-Titusville-Palm Bay, 7 percent to $135,100; and in Panama City, 3 percent to $142,600.
A chart showing statistics for Florida and its 20 MSAs follows. The chart compares the volume of existing, single-family home sales and median sales prices in June 2003 to June 2002, based on Realtor transactions.
The Florida Association of Realtors, the voice for real estate in Florida, provides programs, services, continuing education, research and legislative representation to its 90,000 members in 70 boards/associations.
Florida Sales Report - June 2003
Single-Family, Existing Homes
Statewide &
Metropolitan
Statistical
Areas (MSAs) Realtor Sales Median Sales Price
June June % June June %
2003 2002 Chge 2003 2002 Chge
STATEWIDE 18,828 16,476 14% $161,900 $146,100 11%
Daytona Beach 1,091 808 35 $133,900 $103,100 30
Fort Lauderdale 1,467 1,354 8 $234,300 $204,500 15
Fort Myers-Cape
Coral 844 679 24 $163,200 $156,300 4
Fort Pierce-
Port St. Lucie 576 509 13 $151,700 $123,700 23
Fort Walton
Beach 388 278 40 $154,100 $146,400 5
Gainesville (1) N/A N/A N/A N/A N/A N/A
Jacksonville 1,384 1,371 1 $140,800 $127,600 10
Lakeland-Winter
Haven 462 401 15 $104,400 $93,500 12
Melbourne-
Titusville-
Palm Bay 687 548 25 $135,100 $126,200 7
Miami 1,142 1,124 2 $228,000 $191,900 19
Naples 411 425 -3 $302,900 $269,100 13
Ocala 433 385 12 $94,200 $80,200 17
Orlando 2,807 2,477 13 $148,600 $133,800 11
Panama City 221 164 35 $142,600 $138,300 3
Pensacola 476 448 6 $116,600 $114,400 2
Punta Gorda 359 303 18 $139,300 $125,500 11
Sarasota-
Bradenton (2) 483 392 23 $175,700 $153,200 15
Tallahassee 398 270 47 $136,500 $140,800 -3
Tampa-St.
Petersburg-
Clearwater (3) 3,112 2,556 22 $152,400 $140,100 9
West Palm Beach-
Boca Raton 1,489 1,426 4 $250,600 $211,200 19
(1) Data for Gainesville was not available.
(2) Data for Sarasota was not available.
(3) Data for Hernando County was not available.
This information is based on a survey of MLS sales levels from Florida's Realtor boards/associations. MSAs are defined by the 2000 Census. Source: Florida Association of Realtors and the University of Florida Real Estate Research Center.
Source: Florida Association of Realtors
